It is crazy. Suddenly, you hit your early fifties and are now talking about what retirement means to you. I still feel too young to even think about it, albeit the reflection in the mirror tells another story.

However, what I have discovered is that a mental shift needs to occur before you can truly begin the retirement planning process.

Years ago, an old boss described the preparation for retirement like a train, and it still resonates so well in planning for retirement.

The train engine powers your retirement journey forward with steady momentum from consistent savings and investments. The train compartments hold the bulk of your cargo: diversified assets like stocks, fixed income, and real estate that keep everything balanced through life's tracks. The caboose trails at the end, carrying your estate and legacy plans ensuring a smooth handoff.

The reality is that not all retirements go according to plan, but there are a lot of commonalities as to why this occurs. Therefore, for today's article, here are the top five mistakes pre-retirees are making:

Not planning for how long money will last

A top concern for many retirees is the risk of outliving their savings. It's easy to underestimate life expectancy, especially today, as medical advancements mean people frequently live into their eighties, nineties, or in my grandfather's case, to 100.

Without careful planning, your retirement funds could be depleted sooner than anticipated.

To guard against this, start by building a realistic budget that reflects your expected income and expenses. Consider the number of years your savings may need to support you and prepare accordingly.

It is also wise to reserve a portion of your funds for unexpected costs or emergencies. Working with a retirement planner or specialist can be especially helpful as they can assist in creating a withdrawal strategy that supports your lifestyle while helping ensure your money lasts.

Underestimating healthcare costs

While Social Insurance and pensions can help, healthcare costs often increase as you age. Many retirees fail to adequately plan for additional expenses related to deductibles, co-pays, and services that may not be covered or are very limited.

Failing to plan for these costs can lead to financial stress when you need medical care most.

To prepare, it's wise to budget for healthcare costs, understand what your health policy includes and excludes, and create a dedicated savings account for additional healthcare funding.

Knowing what to expect and planning ahead will help you avoid surprises that could strain your finances.

Lack of flexibility in spending and investing

Retirement is not just about stopping work; it is about adapting to changing circumstances. Some retirees make the mistake of sticking to a rigid spending plan or investment strategy.

When unexpected expenses or market downturns happen, inflexible plans can cause real problems.

It is important to build flexibility into your approach. For example, if the stock market dips, having cash reserves or more conservative investments can help you weather the storm.

Likewise, if your healthcare costs increase or other unexpected expenses arise, being able to adjust your spending can prevent financial stress.

Regularly reviewing your financial plan and making adjustments as needed is key. Life is unpredictable, and staying flexible helps you enjoy retirement without unnecessary worry.

Not diversifying investments enough

Many retirees have a significant portion of their savings in one type of investment. Although concentrating investments might seem simple, it can be risky. If the market takes a downturn or that particular investment underperforms, your savings could suffer.

Diversification means spreading your money across different types of investments stocks, fixed income, real estate, and cash.

This strategy helps reduce risk because different investments tend to perform differently over time. A well-diversified portfolio can provide more stability and steady growth, helping your money last longer.

If you are unsure or uncomfortable about how to diversify or rebalance your portfolio, consider meeting with a financial adviser. They can help you develop an investment plan tailored to your retirement goals and risk tolerance.

Neglecting your estate plan

After a lifetime of saving and smart planning, the last thing you want is for a lack of paperwork to create chaos for the people you love. Yet, this is exactly what happens when retirees overlook estate planning.

Think of an estate plan as the final instruction manual for your life's work. It is not just about a will; it is about making sure your retirement accounts, property, and even your healthcare decisions are handled according to your wishes.

It means naming a trusted person to step in and manage things if you ever become unable to do so yourself.

Putting these documents in place is not morbid — it is one of the greatest gifts you can give your family. It spares them from costly legal battles and painful guesswork during an emotional time, ensuring your legacy is one of clarity and care, not confusion.

At the end of the day, retirement should be a time to reap what you have sowed, a chapter defined by freedom, not worry. Achieving that vision requires more than just hope; it requires a thoughtful approach to the road ahead.

By planning for a longer life, preparing for healthcare needs, staying adaptable, diversifying your investments, and putting a solid estate plan in place, you build a foundation for true peace of mind.

These steps are not about restricting your present; they are about protecting your future so you can relax and enjoy today.

It’s never too late to revisit your strategy and make a change. When you take proactive control, you ensure your retirement years are exactly what they should be: comfortable, secure, and yours to enjoy.

• Carla Seely is the chief operating officer at Freisenbruch Insurance Services Limited and has 26 years of experience in the international financial services, wealth management, and insurance industries. During her career, she has obtained several investment licences through the Canadian Securities Institute. She holds the ACSI qualification through the Chartered Institute for Securities and Investments (UK), the qualified associate financial planner (QAFP) designation through FP Canada, and the associate in insurance (AINS) designation through The Institutes. She also completed a Master’s Degree in Business and Management through University of Essex

• For further inquiries or suggested topics, e-mail justaskcarla@outlook.com